Traders protest against GST Bill, send memorandum to Jaitley

Verma said under GST the regime there will be common portal managed by the GST Network. He said for commodities which will be used by the weaker sections, the rates will be lower (and) there would be a standard rate for the rest of the commodities.

However, during an interaction with industry leaders on GST here, the minister said the other demand of constitutionalising a tax rate could not be accommodated as tariffs are never specified in the Constitution.

Referring to the recommendation of the panel headed by Subramanian, he said it is “settled” that the standard rate is going to be less than 18% or much less than 18%.

The minister said he would go ahead with reducing direct tax exemptions and gradually bring down the highest marginal rate of corporate tax to 25%.

To blunt the opposition charge of not passing benefits of low oil prices to the people, Jaitley said in the past, states like Delhi, Bihar, West Bengal, Himachal Pradesh and Punjab had increased Value-Added Tax rates immediately after oil companies cut prices.

Seen as key to facilitating industrial growth and improving the business climate in the country, the passage of the bill to become a law is a lengthy process, as first the constitution amendment bill will need to be passed with two-thirds majority in both houses of parliament and then be ratified by at least 15 state legislatures before getting the assent of the president.

“Can tariffs be cast in stone? So we can not put a rate in the Constitution”, the minister said.

The government is creating a situation where states and the Centre are pooling in their strengths for better India. The GST bill will probably be pushed back to the next parliamentary session in February. Jaitley said if differences still persist, the council will create a dispute redressal mechanism. “So the issues are actually resolvable, provided there is an intention to resolve them”, the FM said.

The Congress has been stalling passage of the bill in the Rajya Sabha where the ruling NDA is in a minority. “Though the tally of AIADMK, which is opposed to GST, will go up in the Rajya Sabha after April, the government hopes to get some nominated members to its kitty to more than compensate for that”, confided a top government source underlining how the decline in Congress tally in the Rajya Sabha may help the BJP to pursue the GST bill more effectively in the second half of Budget session. The Bill was sent to a select committee of the Upper House and a report is with the House now.

“And therefore, we are at a stage today (where) we have lip sympathy for the GST, but that sympathy ends with that”.